Denny's Corp (DENN) Tops Q1 EPS by 1c; Bumps Outlook
Denny's Corp (NASDAQ: DENN) reported Q1 EPS of $0.10, $0.01 better than the analyst estimate of $0.09. Revenue for the quarter came in at $120.2 million versus the consensus estimate of $117.1 million.
Domestic system-wide same-store sales growth of 7.2%, comprised of a 7.6% increase at company restaurants and 7.1% increase at domestic franchised restaurants.
Business Outlook
Mark Wolfinger, Denny's Executive Vice President, Chief Administrative Officer and Chief Financial Officer, commented, “Our strong first quarter sales growth led to margin expansion and 41% growth in Adjusted Net Income per Share*. We are excited about continuing to grow our highly franchised business and using our Free Cash Flow* to both reinvest in our company restaurants and return value to our shareholders through our ongoing share repurchase program. Due to our strong first quarter results, we are raising our annual guidance for same-store sales and Adjusted EBITDA*."
The following full year 2015 estimates are based on management’s expectations at this time. A key consideration impacting the Company's outlook for 2015 is having 52 operating weeks in the year compared to 53 operating weeks in 2014.
| Component | Full Year 2015 Guidance | |
| Previous** | Current | |
| Domestic Franchise Same-Store Sales | 1.5% to 3.0% | 2.5% to 3.5% |
| Company Same-Store Sales | 2.5% to 4.0% | 3.5% to 4.5% |
| New Restaurant Openings | 35 - 45 (All Franchised) | No Change |
| Net Restaurant Growth | Single Digit | No Change |
| Total General and Administrative Expenses (includes Share-Based Compensation) | $58M to $61M | $61M to $64M |
| Adjusted EBITDA* | $84M to $86M | $85M to $87M |
| Cash Capital Expenditures | $23M to $25M | $24M to $26M |
| Depreciation and Amortization Expense | $20M to $21M | No Change |
| Interest Expense, net | $9.5M to $10.5M | $8.5M to $9.5M |
| Effective Income Tax Rate (Cash Taxes) | 36% to 38% ($5M to $7M) | 36% to 38% ($6M to $8M) |
| Free Cash Flow* | $45M to $47M | No Change |
For earnings history and earnings-related data on Denny's Corp (DENN) click here.